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Gov’t promises more tax reductions in 2018 budget

The government has indicated that it is still committed to reducing the cost of doing business in the country, by reviewing some taxes paid by firms.

Managers of the economy have come under some criticisms over delays in removing all the taxes including reduction of corporate taxes, as announced in the New Patriotic Party (NPP) manifesto in the ahead of 2016 elections.

But Deputy Finance Minister, Kweku Kwarteng, told Joy Business these reductions must be guided by current developments in the economy.

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He said, “we promised to cut tax in our manifesto; we have four years and we have promised that we will deliver on all those tax cuts. But we have to be quick to add that we should be able to manage these tax measures in such a way that they do not collapse the economy.”

“We provided quite many tax reliefs in the 2017 budget. We will do some more in the 2018 budget but we are careful to manage this in such a way that ultimately it will strengthen the economy rather than weaken it,” he said.

The Deputy Minister pleaded with “stakeholders to exercise patience” assuring that the administration “will deliver on all the tax measures that we promise in our manifesto and in the 2017 budget.”

The government has already removed, some taxes on spare parts, tax on financial services as well as reduced tax rates paid on some goods and services.

The 2018 budget would be presented by finance minister Ken Ofori Atta in November.